- The Telecommunications Towers Company and subsidiary of the Saudi Telecom Company, TAWAL, has raised bank financing in compliance with Islamic Sharia at a value of $ 1.42 billion (5.3 billion riyals) to acquire 3 tower companies belonging to the United Group in Bulgaria, Croatia and Slovenia. Last April, TAWAL agreed to buy tower companies at a value of 1.22 billion euros ($1.34 billion), in the first expansion step for the Saudi telecom giant in European markets.
- Among the contributors, Saudi National Bank, the largest bank in the kingdom, played a significant role with a contribution of $1.02 billion, of which $300 million was attributed to a bridge loan. Additionally, Dubai Islamic Bank and First Abu Dhabi Bank contributed $250 million and $150 million respectively. The financial implications of this transaction for STC will be evident in its third-quarter earnings..
Why it matters
After completing the acquisition, the portfolio of towers owned and operated by TAWAL increased to more than 21,000 towers in 5 countries. STC announced in its disclosure that its subsidiary had obtained all the necessary approvals to complete the acquisition last Thursday, provided that the financial impact appears in the consolidated financial statements for the third quarter.